You may have trouble getting insurance if the property has knob and tube.Plumbing is also important.

Management is impossible to select until you have picked and vetted a firm- while it is an operating expense, you're likely going to pay from GOI...so assume closer to 12% NOIYour vacancy is pretty low, but it's all relative here...I would at least set aside 1-2 months gross rent for an unexpected turnoverIf you can insure a 4-unit property for $150/mo. you have an awesome agentAssuming 50% of your income will go to OpEX is pointless.

There's also a chance the PM sucks and you either need to part ways according to what the PM agreement allows, or become substantially more involved in the relationship with the manager - essentially becoming the "squeaky wheel" who will get the grease.Keep in mind the RE industry has a very small barrier to entry, which allows a lot of seemingly unable people to get involved. 

Hello Edgardo, and congratulations on picking this industry as your "side hustle".

In Florida, the Department of Business and Professional Regulation provides oversight for the construction industry. 

By doing this, I left my job and the industry I was in because I disliked it and became a real estate agent.

Texas is very business friendly state and now diversified with so many industries... even oil crash did not impact in last few years.I am surprised to see Brooklyn and Boston in this list...

F.e. you'd need a banker, an attorney, an insurance broker, etc...

Download PDF Edit Report Discuss in Forums Other Actions $1,500.00 Monthly Income $786.67 Monthly Expenses $713.33 Monthly Cashflow 12.53% Pro Forma Cap $10,024.00 NOI $18,480.00 Total Cash Needed 46.32% Cash on Cash ROI 18.26% Purchase Cap Rate Expenses Income 50% Rule Total operating expenses: $664.67 Mortgage expenses: $122.00 Vacancy: $75.00 Repairs: $75.00 CapEx: $75.00 Insurance: $150.00 Management: $150.00 P&I: $122.00 Property Taxes: $139.67 $54,900 Purchase Price Purchase Closing Costs $2,500.00 Estimated Repairs $5,000.00 Total Project Cost $62,400.00 After Repair Value $80,000.00 Down Payment $10,980.00 Loan Amount $43,920.00 Loan Points $0.00 Amortized Over 30 years Loan Interest Rate Monthly P&I $122.00 Total Cash Needed $18,480.00

CA benefits from a glorious past with tech industry and entertainment industry to name a few, that were built before CA became effectively a one party system; and this "People's Republic" unfortunately also "occupies" more than half of our beautiful West Coast with prime real estate.